Unite sells two properties to joint venture for £342m

(Sharecast News) - Student accommodation provider Unite said it had sold two London properties to its London Student Accommodation joint venture with GIC for £342m.
Unite's share of the deal is £171m, in line with book values and reflecting an average net initial yield of 4.0%, the company said on Friday.

The properties are located in Wembley and Whitechapel, London and offer 1,358 bed spaces, of which the majority are direct-let to students, and had a gross asset value of £338m at December 31, 2020.

The joint venture will fund the acquisition through £208m of equity from Unite and GIC and a £140m million eight-year loan facility provided by Barings.

Net disposal proceeds will initially be used to repay group debt ahead of reinvestment into the development pipeline and further growth opportunities over time, Unite said

"The transaction will result in a small dilution to 2021 EPRA earnings of 0.4p per share. Accordingly, the group retains its EPRA EPS guidance of 27-30 pence for 2021," the company added.